A business process is defined as a network of activities that generate value by

BD Corporation has purchased new computers to modernize the office. The increased efficiency from the computers will lead to inc

Inessa [10]

Answer:

BD Corporation should not purchase the new computers

Explanation:

initial outlay year 0 = -$300,000

increased productivity per year = $75,000 for years 1-5

discount rate = 8%

NPV = -$300,000 + $75,000/1.08 + $75,000/1.08² + $75,000/1.08³ + $75,000/1.08⁴ + $75,000/1.08⁵ = -$300,000 + $69,444.44 + $64,300.41 + $59,537.42 + $55,127.24 + $51,043.74 = -$300,000 + 299,453.25 = -$546.75

since NPV is negative, then the project should be rejected

we can also use an annuity factor to determine the present value of this annuity, PV = $75,000 x 3.9927 = $299,452.50

NPV = -$300,000 + $299,452.50 = -$547.50

5 0

3 years ago

Cookies by casey has sales of $487,000 with costs of $263,000. interest expense is $26,000 and depreciation is $42,000. the tax

Ber [7]

The net income of Cookies by casey is $123,240

What is net income?

The net income of the company is the excess of its sales revenue over all costs of the running the business, which includes, the costs of sale, interest expense, depreciation as well as the taxes payable to the government authority which is 21% of profits before tax in this case.

Profit before tax=sales-costs of sale-depreciation-interest expense

sales=$487,000

costs of sale=$263,000

depreciation=$42,000

interest expense=$26,000

profit before tax=$487,000-$263,000-$42,000-$26,000

profit before tax=$156,000

tax rate=21%

net income=profit before tax*(1-tax rate)

net income=$156,000*(1-21%)

net income=$123,240

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8 0

1 year ago

if Alexis invest $2,000 into a fund that earns 5.5% interest compounded annually, how long will it take for her investment to gr

madreJ [45]

Answer:

73 years

Explanation:

To solve this problem, we can use the formula for the annual compound interest, which is:

$A=P(1+r)^t$

where:

A is the final amount after time t

P is the principal

r is the rate of interest

t is the time

In this problem, we have:

$P=\$2000$ is the principal

$r=0.055$ is the interest rate (5.5%)

We want to find the time t at which the amount of money is

A = $100,000

Therefore, we can re-arrange the equation and solve for t:

$(1+r)^t=\frac{A}{P}\\t=log_{1+r}(\frac{A}{P})=log_{1+0.055}(\frac{100,000}{2000})=73$

So, it will take 73 years.

3 0

3 years ago

Raggs, Ltd. a clothing firm, determines that in order to sell x suits, the price per suit must be p=120 - 0.5 x. It also deter

kodGreya [7K]

Answer:

A) R(x) = 120x - 0.5x^2

B) P(x) = - 0.75x^2 + 120x - 2500

C) 80

D) 2300

E) 80

Explanation:

Given the following :

Price of suit 'x' :

p = 120 - 0.5x

Cost of producing 'x' suits :

C(x)=2500 + 0.25 x^2

A) calculate total revenue 'R(x)'

Total Revenue = price × total quantity sold, If total quantity sold = 'x'

R(x) = (120 - 0.5x) * x

R(x) = 120x - 0.5x^2

B) Total profit, 'p(x)'

Profit = Total revenue - Cost of production

P(x) = R(x) - C(x)

P(x) = (120x - 0.5x^2) - (2500 + 0.25x^2)

P(x) = 120x - 0.5x^2 - 2500 - 0.25x^2

P(x) = - 0.5x^2 - 0.25x^2 + 120x - 2500

P(x) = - 0.75x^2 + 120x - 2500

C) To maximize profit

Find the marginal profit 'p' (x)'

First derivative of p(x)

d/dx (p(x)) = - 2(0.75)x + 120

P'(x) = - 1.5x + 120

-1.5x + 120 = 0

-1.5x = - 120

x = 120 / 1.5

x = 80

D) maximum profit

P(x) = - 0.75x^2 + 120x - 2500

P(80) = - 0.75(80)^2 + 120(80) - 2500

= -0.75(6400) + 9600 - 2500

= -4800 + 9600 - 2500

= 2300

E) price per suit in other to maximize profit

P = 120 - 0.5x

P = 120 - 0.5(80)

P = 120 - 40

P = $80

8 0

3 years ago

Essman might overlook strategic risks, the business plan at hand can be a good plan and the Product mix may be one of the best.

WITCHER [35]

Risk retention is good for the company as the good has the better strategies planned about the product mix and if the things changed in the future the company is able to conquer the loss.

<h3>What is product mix?</h3>

Product mix is the total number of products sell by the particular company, the products can be further divided into the categories and division. Many big companies have the different line products like the cosmetics, glasses, home materials and others.

Thus, Risk retention is good for the company as the good has the better strategies

For more details about Product mix, click here:

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6 0

2 years ago